Getting Your Business Ready to Apply for Funding
During some point in the lifespan of a business, the owner may feel they could benefit from additional working capital. Whether it is the need to keep a business alive, looking to grow the business or a seizing a new opportunity, trying to find avenues for additional working capital is part of being a business owner. Regardless of the reasoning behind it, there are particular attributes in a business that all lenders are going to look at. Being aware of what is needed and required from lenders is the first step to getting your business prepared to apply for financing.
Being aware of what is needed and required from lenders is the first step to getting your business prepared to apply for financing.
First thing is to make sure all business credentials are up to date and active. Make sure your business is current with the state and an active business license is readily available. If you are a business that requires specific permits or licenses to run, you should make sure all of these are current as well. These documents will be extremely important in the application process for funding.
Second, it is important to understand your personal credit score. Regardless of the number, you want to be aware of any delinquency or activity on your credit history report. Being aware and having the chance to explain to lenders what they are looking at will go a lot further then being blind to a low credit score. There are plenty of lenders that will still be willing to give a business a chance regardless of their credit score. It speaks volumes to show you are aware and educated on your current situation.
Watch additional spending! Lenders will be taking a look at your business bank account. If you have several negative days a month and miscellaneous charges on personal items, this may factor into your eligibility for funding. The most important thing lenders will look at when you apply for funding is that that you will be able to repay them!
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